AMD slumps to a $1bn loss after dismal fourth quarter

CHIP DESIGNER AMD reported another set of lacklustre financials as the firm staggered to a $1bn loss in 2012.

AMD's difficult 2012 was confirmed with red ink as the firm reported its fourth quarter financials with a steep decline in revenue and a loss. The firm's fourth quarter revenues fell by 32 percent to $1.16bn from the same period last year and the company ended the year by racking up a $422m quarterly loss.

AMD's disastrous fourth quarter, which included laying off close to 15 percent of its workforce, left the firm with a $1bn loss for the full year, compared to a $368m profit for 2011. The firm had very little to shout about, with revenue from its Computing Solutions division falling by 37 percent in the final quarter, and even its graphics business saw its profits fall by 22 percent to $22m.

Not surprisingly AMD CEO Rory Read talked about the investments the firm is making that hold promise for the future. He said, "The investments we are making in technology today are focused on leveraging our distinctive IP to drive growth in ultra low power client devices, semi-custom SoCs and dense servers.

"We expect to deliver differentiated and groundbreaking APUs [accelerated processing units] to our customers in 2013 and remain focused on transforming our operating model to the business realities of today."

AMD is banking on tablets and all-in-one machines to help it get back into the black and while the firm's 2013 chip lineup suggests that it might have something to compete with Intel, whether it can compete with Samsung, Qualcomm and Texas Instruments for tablet production wins is uncertain.